The central bank flagged deficiencies in customer risk categorisation and the issuance of multiple Customer Identification Codes (CICs) instead of a Unique Customer Identification Code (UCIC).
RBI’s action follows a statutory ‘Inspection for Supervisory Evaluation’ conducted based on HDFC Bank’s financial position as of March 31, 2023.
The regulator found that the lender failed to categorise customers into low, medium, and high-risk segments, which is a key requirement under KYC regulations.
Also read: RBI imposes ₹36-lakh penalty on IDBI Bank for FEMA violation
In a separate action, RBI has also penalised KLM Axiva Finvest, a non-deposit-taking Middle Layer NBFC, with a ₹10 lakh fine.
The company declared a dividend for FY24 despite failing to meet the minimum prudential requirements over the last three financial years, violating the NBFC Scale-Based Regulation framework.
Shares of HDFC Bank, India’s largest private lender, closed at ₹1,805.95 on March 26, down 0.85%, ahead of RBI’s announcement.
